Industrialization and Economic Growth Flashcards
Government promotion
Government supported the railroads by land grants, taking the land surrounding and giving it to the railroads to make and improve towns. Gives federal loans to produce the railroads.
Robber Barrons
Corruption
Stock watering, Jay Gould. Say that the stock is higher than the sale, people see that the higher of his stock is higher and want to buy it instead of others. People would also buy a judge or politician.
Robber Barons
Cornelius Vanderbuilt V. Jim Fisk
Cut prices lower than other railroad companies and give secret rebates to other people. People will form a pool/combination, joining with other companies to get rid of smaller businesses. Creates a monopoly.
Technology
Pacific Railway Act
Designated the 32nd parallel as the initial transcontinental route
Technology
Promintary point
The point in Utah where the Union pacific and central pacific meet
Technology
Telegraph
Thomas Alva Edison made the phonograph, lightbulb, and projectors.
Technology
Stock Ticker
How they keep track of stock price
Technology
Refrigerator car
refrigerated cars allows meat and perishable goods to be shipped across the country.
Technology
Telephone, Cash register
allowed faster work and comunication
New Financial Structures
Trust
Provides legal obligation for one party giving the second party right to hold title to property or assets for the benefit of a third party/company
New Financial Structures
Interlocking Directorate
Interlocking directorates is where the same people are on the board of directors for different companies, making sure the stocks are based in their own favor instead of instead of the stock brokers.
New Financial Structures
Holding Company
Overarching company that has other companies under it, all controlled by John Rockefeller
New Financial Structures
Business Methods-
Secret Rebates:
Businesses will give other company rebates if they use their property, like rail roads instead of somebody else’s.
New Financial Structures
Business Methods-
Watering Stock
Saying that the stock prices were worth more than they are so people will then buy the stocks instead of others.
New Financial Structures
Business Methods-
Pools
Like a handshake between companies in the same industry that will come together to form a group of contributors who will then try to eliminate other competitors.
New Financial Structures
Business Methods-
Vertical Integration
Taking up at least one part of the different levels of the production process
New Financial Structures
Business Methods-
Horizontal Integration
Owns the entire specific process of production, like oil refining for Rockefeller
Impact on the Economy
Growing towns along the great lakes and canals, new factories being built. New markets are bigger and so is business, so people continue to move west
Impact on Immigration
Increased immigration for people to work on the RR and take some land from the Homestead Act. Working and consuming in towns, generating wealth
Impact on Urbanization
Bigger cities and factories to accommodate from the resources. Time zones are created.
Andrew Carnegie- Gospel of Wealth
Wealth means you have a responsibility to give back to society, not through handouts, but through libraries and universities.
The New South
Copy strategies of the North. There is more growth with textile production instead of just cotton. However, the African Americans enter The Long Night, as their poverty increases and are pushed back to sharecropping. They are still heavily tied to cotton production.
